Regional Measure 2: Capital Program Update

1. Regional Measure 2:Capital Program Update October 14, 2009 Programming and Allocations

2. Program Overview • Passed by Voters in March 2004 • Began Allocating July 2004 – capital and operating program • Capital Semi-Annual Reporting • Operating Annual Reporting • More than 5 years since first allocations

3. Revenue Update * FY 2004-05 revenues are lower because of reimbursement to counties for administration costs & 4-month discount for FasTrak customers.

4. Capital Program: Allocation Summary • 37 Projects in Statute, $1.5 billion program • Allocations through June 2009: $963 million • Almost two-thirds of program allocated

5. Reimbursements Through June 2009: $458 million (approx 50% of allocated funds) Capital Program Progress: Reimbursements to Sponsors $ Millions Fiscal Year 5

6. Project Progress Semi-Annual Report Findings: Budget/Schedule Status* 6 6 *Does not include subproject details

7. Impacts of Economic Downturn • Uncertainty in State Funding • Drop in Sales Tax (Measure Counties) • Lower Bridge Tolls • Stimulus/ARRA Funding • Lower Bid Prices

8. Projects: Completed • AC Transit Real Time Transit Hastus Software Upgrade • Express Bus South – Grand MacArthur Corridor • I-80 HOV Lane Improvements in Solano county (ARRA funding in corridor) • Water Transit Spare Vessel - Pisces

9. Projects: On Track Nearing Construction Completion - • Ardenwood Park and Ride Lot • Cal Park Hill Tunnel – First Phase Ardenwood Park & Ride Lot

10. Under Construction – Transit - BART Tube Seismic Strengthening BART Extension to Warm Springs (Tunnel Segment) Transbay Terminal – Construction of temporary terminal Water Transit South San Francisco Ferry Vessels Real Time Transit – Installation of real-time display units for MUNI, AC Transit & WestCAT Highway – I-580 Eastbound HOV Phase 1 (ARRA funding in corridor) Solano 80/680/12 Interchange – North Connector (ARRA funding in corridor) Projects: On Track 10

11. Nearing Construction– eBART Median Widening WETA South San Francisco Ferry Terminal Dredging I-580 EB HOV Phase 2 (ARRA funding in corridor) Caldecott Tunnel Improvements – Fourth Bore (ARRA funded) Projects: On Track 11

12. Project Progress WETA: Commute Ferry Service for South San Francisco: • Transition Plan Completed • Project funding fully identified • Design and permitting complete • Lease between WETA & San Mateo Harbor District being finalized • Dredging contract awarded in September; ferry terminal construction soon after • Construction of 2 Vessels ongoing

13. Oakland Airport Connector: Funding plan in place BART proceeding with Design-Build-Operate-Maintain (DBOM) procurement Four bids received in September Contract expected to be awarded in December Project Progress 13

14. I-80 EB HOV Lane Extension from Route 4 to Carquinez Bridge Project development costs exceeded original estimate Caltrans proactively controlled costs after identification Project is on track for construction in late 2009 Project Progress 14

15. Caldecott Tunnel Improvements – Fourth Bore Project faced lawsuits that threatened to derail project Lawsuits were settled in early 2009 Project funding was threatened by State Budget Crisis MTC and Caltrans used Recovery Funds to keep project on track Caltrans opened bids in late September Lowest bid 20% below engineer’s estimate Project is on track for construction in late 2009 Project Progress 15

16. Sonoma Marin Rapid Transit (SMART): No current RM2 allocation for the rail segment Cost estimate being updated with increase anticipated Sales tax revenue below previous projection Fundable project plan needed Rolling stock specifications adopted Projects: At Risk 16

17. Transbay Terminal: Temporary Terminal to start operations in Spring 2010 Soft real estate market may impact funding Cost anticipated to increase Train box construction in Phase 1 (“Bottom Up” approach) – Applying for ARRA – High Speed Rail funds Decisions in next month critical to project TIFIA loan approval (credit committee recommended) ARRA funds approval Projects: At Risk 17

18. Dumbarton Commuter Rail Service: New project cost estimate released: $701 million (was $595 million) Project underfunded by approximately $400 million Stakeholders looking at a variety of project options, and may include an interim bus enhancement Revised environmental review process strategy to be developed May seek separate environmental clearance at programmatic and fundable project-specific levels AC Transit BRT: AC Transit approached MTC with proposal to shift roughly $80 million capital revenues dedicated to BRT to operating budget as follows: $45.6 million in RM2 funds to minimize service reductions $35 million in CMAQ funds to explore viability of proposed new/expanded services Projects: High Risk 18

19. Program Outlook: Anticipated Allocations • Oakland Airport Connector (CON) • Transbay Transit Center (CON) • e-BART (PS&E/ROW/CON) • BART to Warm Springs (CON) • Solano I-80 EB Cordelia Truck Scales (PS&E/ROW) • I-80/I-680/SR-12 Interchange in Solano Co. (PS&E)

20. Program Assessment • More of the bigger projects moving towards construction • MTC is working with project sponsors to examine cash flow needs as projects move into capital intensive phases • Bid climate favorable resulting in cost savings on some projects; MTC monitoring projects with substantial bid savings to work out potential revised funding plans. • Many major capital projects still not fully funded; Resolution 3434 Strategic Plan continuing to address funding shortfalls • Projects and monitoring efforts are becoming more complex as projects advance.